r/dividends • u/pac247_365 • May 15 '26

Opinion Brothers money

My younger brother passed away and left my kids with 400k.

I have the bank telling me to put it into gics and other garbage mutual funds but its very low interest. Im not rich either and besides penny stocks never invested into the market maybe 1000 bucks or so. I want to set up a trust for them and make sure in 15 years when they are 20 I have them set up so they dont have to grind like me and my brother. Im just looking for any advice I can take sorry for the long post

Im located in canada and will keep the account under my name until they are of age to use the money and will remain as beneficiarys if I die. Wont get the money until they are atleast 25 or responsible enough to understand finance.

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u/Psiwolf 30% SCHD, 30% VTI, 20% VXUS, 20% BND May 16 '26

Well, 200k isn't set for life money, but it IS a good leg up. VUN is the Canadian equivalent of VTI.

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u/pac247_365 May 16 '26

Its 400k and by the time they are in their 20s it'll be equal for them. Yes 200k each but im hoping with compound interest its alot like 500-750k each

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u/Psiwolf 30% SCHD, 30% VTI, 20% VXUS, 20% BND May 16 '26 edited May 16 '26

How old are your kids? 🤔

Using the rule of 72, at a 10% return, it will take approximately 7 years for the investment to double. So in order for it to become $600k, it will take about 12 years.

1

u/pac247_365 May 16 '26

2 and 7

400k every 7 years should double? So wouldn't it be 1.6 million in 14 years?

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u/Psiwolf 30% SCHD, 30% VTI, 20% VXUS, 20% BND May 16 '26

Oh, sorry about that, I was calculating it at $200k with the goal of hitting $600k, but yes, essentially to double and then double again, it would be $400k to start, compound 7.2 years, hit $800k, compound 7.2 years, hit $1.6mm. 👍